Traders are watching and waiting for Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole Symposium.
The baseline expectation is that Powell will avoid committing to any move at the September meeting. Instead, he is likely to repeat that decisions will depend on the full set of economic data released between now and then.
If Powell were to even weakly signal a rate cut in September, the S&P 500 could rally. However, the reaction may be limited since markets are already pricing in a high probability of easing. According to CME’s FedWatch tool, traders see a 71% chance of a quarter-point cut in September.
Looking beyond September, a hint of rate cuts in October, November, or December could weaken the U.S. dollar and provide support for gold.
The baseline expectation is that Powell will avoid committing to any move at the September meeting. Instead, he is likely to repeat that decisions will depend on the full set of economic data released between now and then.
If Powell were to even weakly signal a rate cut in September, the S&P 500 could rally. However, the reaction may be limited since markets are already pricing in a high probability of easing. According to CME’s FedWatch tool, traders see a 71% chance of a quarter-point cut in September.
Looking beyond September, a hint of rate cuts in October, November, or December could weaken the U.S. dollar and provide support for gold.
Economic Calendar:
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Economic Calendar:
blackbull.com/en/economic-calendar/?utm_source=tradingview
Free TradingView Premium:
blackbull.com/en/platforms/tradingview/?utm_source=tradingview
blackbull.com/en/economic-calendar/?utm_source=tradingview
Free TradingView Premium:
blackbull.com/en/platforms/tradingview/?utm_source=tradingview
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.